DryShips Inc. (NASDAQ:DRYS) was skyrocketing today on news of a deal for DRYS stock.
The deal will have DryShips Inc. offering $100 million of DRYS stock to its shareholders at a price of $2.75 per share. This agreement was approved by the company’s Board of Directors. The offer will be backstopped by Sierra Investments Inc., a company that has connections with DRYS Chairman and CEO George Economou.
DryShips Inc. also says that its Board of Directors have approved a similar agreement for affiliates of its CEO. This will also allow those groups to purchase up to $100 million worth of DRYS stock for $2.75 per share.
This was made possible through a Term Sheet that was created by DryShips Inc.’s Board of Directors. The company says that it retains the right to cancel or amend this as needed. It also says that the affiliates of its CEO are working to complete the transaction as soon as possible.
DryShips Inc. also notes that its CEO will not be exercising his subscription rights to the offering being made by the company. However, he will still use his right for the backstop commitment that is part of the deal.
DryShips Inc. says that it has also canceled one stock offer deal from earlier this year. The stock offer was made on April, 3, 2017 with Kalani Investments Limited. DRYS says that the new offers that were announced today are the reason for it cancelling this deal.
DRYS stock was up 50% as of noon Friday.
As of this writing, William White did not hold a position in any of the aforementioned securities.